Global Market Update
Canadian Markets
Canada’s main stock index fell as traders awaited further clarity on upcoming U.S. trade tariffs. The uncertainty is compounded by Canadian steel and aluminum plants laying off workers due to these tariffs. In response to U.S. tariffs, Canada has frozen rebate payments to Tesla and banned the company from participating in future rebate programs.
American Markets
U.S. stocks dropped across the board as investors worry about the impending tariffs set to take effect on April 2nd, with Tesla and Nvidia leading the market lower. The uncertainty surrounding these trade policies is affecting investor sentiment as President Trump now doesn’t want ‘too many exceptions’ on tariffs coming into effect, raising concerns of a bigger fallout from tariffs
European Markets
European markets declined, with the healthcare sector leading the way down. Global trade uncertainties and tariff concerns are weighing on investor confidence. Euro zone data released today showed that Spain’s 2024 economic growth outperformed all other members in the EU.
UK markets rose as the British pound weakened, after inflationary data revealed a larger-than-expected slowdown in February. However, concerns about U.S. tariffs impacting the UK economy remain, with the Office for Budget Responsibility (OBR) warning that U.S. tariffs could potentially reduce the size of the UK economy by 1%. Data also showed that UK house prices jump by the most within the last 2 years.
Corporate Stock News
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Archer-Daniels-Midland Co: The company is making job cuts at its grain trading and oilseed processing division, as part of a $500 million to $750 million cost-cutting plan. CEO Juan Luciano’s compensation decreased from $24.4 million to $21.6 million in 2024 due to accounting issues.
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Ashland Inc: JPMorgan raised its target price to $71 from $68, noting the company’s stabilization after two years of contraction and its potential for strong earnings under healthier business conditions.
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Boeing Co: A U.S. judge set a June 23 trial date for Boeing in a criminal fraud case related to misrepresentations about the 737 MAX system, following fatal crashes. Boeing is seeking to withdraw its current plea deal.
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Chevron Corp: The U.S. oil producer expressed interest in exploring hydrocarbons off Crete, Greece. The Greek energy ministry is evaluating Chevron’s interest for two blocks south of Crete.
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ConnectOne Bancorp Inc: KBW raised its target price to $32 from $31, citing that the stock is undervalued relative to peers and historical averages, despite strong key metrics in the SMID-cap bank sector.
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Dollar Tree Inc: The company will sell its Family Dollar business to a private-equity consortium for $1 billion, aiming to restructure its business. Shares rose in premarket trading.
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First Quantum Minerals Ltd: Panama’s government has not authorized visits to FM’s Cobre Panama mine, which is shut due to an environmental dispute. Panama is planning an audit of the operations and environmental impact.
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GameStop Corp: The company approved the addition of bitcoin to its treasury reserve and plans to invest in bitcoin using a portion of its cash or debt/equity issuances. GameStop’s fourth-quarter net income more than doubled, reaching $131.3 million.
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Grab Holding Ltd: The company is seeking a $2 billion loan to help finance its potential takeover of Indonesia’s GoTo. Discussions with banks are in early stages.
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KB Home: KBW lowered its target price to $65 from $76 due to weaker-than-expected first-quarter earnings.
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Lightspeed Commerce Inc: Raymond James cut its target price to C$25 from C$29, citing weaker consumer trends and macroeconomic conditions.
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Papa John’s International Inc: Stifel reduced its target price to $40 from $45, anticipating first-quarter results to remain consistent with early-quarter trends despite macroeconomic challenges.
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Phillips 66: The company plans to nominate two new directors to its board amid a proxy fight with activist investor Elliott Investment Management, which has nominated its own slate of directors.
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Siemens Energy: Siemens Energy will sell 90% of its wind turbine business in India and Sri Lanka to a TPG-led investor group to focus on core markets. The deal includes transferring 1,000 employees and two plants.
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Sunoco LP: Raymond James raised its target price to $67 from $66, optimistic about the company’s strategy and profitability in fuels distribution.
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Tesla Inc: Canada froze rebate payments to Tesla and banned the company from future rebate programs due to U.S. tariffs. Tesla will start sales in Saudi Arabia next month.
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TPG Inc: Siemens Energy sold 90% of its wind turbine business in India and Sri Lanka to a TPG-led group, focusing on its core markets.
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Venture Global Inc: The U.S. LNG developer is seeking approval from federal regulators to begin operations at its Calcasieu Pass LNG export facility, with plans to start commercial operations by April 15.
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UBS: UBS is trying to avoid tougher regulations by offering to limit the future size of its investment bank and hold more capital.
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